Cadbury and Hershey: merge will be favorable to both companies
Last week shareholders of the leading world manufacturer of confectionery products Cadbury Schweppes Plc. have approved the transaction on branch of North American division of company Dr Pepper, which will be engaged in soft drinks’ manufacture. This division is planned to be finished till May, 7th 2008г.
Now experts mark, that Cadbury has to reflect on purchase of any manufacturer of confectionery and chocolate production as the company can soon become the purpose for absorption.
Some analysts consider that Cadbury considers an opportunity of purchase of the American chocolate manufacturer Hershey Co. and this merge can be favorable to both companies, as British company hopes to increase the presence in the American market, while Hershey plans to receive a greater share in the world market.
It is necessary to note, that if Cadbury’ and Hershey’ negotiations will not be successful, British company can become the object of absorption. In particular, such companies as Kraft Foods Inc and Wrigley will not refuse to get the world leading confectionery products manufacturer.
It is worth of mentioning that British company Cadbury Schweppes Plc is one of world leaders in the soft drinks and confectionery products market. Cadbury Schweppes has been formed in 1969 after the Cadbury’s and Schweppes’ merge.
